Life Settlement Agreement Template for United Arab Emirates

The Life Settlement Agreement is utilized when a life insurance policy owner wishes to sell their policy to a third party for a value greater than the surrender value but less than the death benefit. This transaction type has become increasingly relevant in the UAE financial markets, requiring careful consideration of both UAE federal laws and, where applicable, Sharia principles. The agreement must comply with UAE Federal Law No. 6 of 2007 (Insurance Law), UAE Federal Law No. 14 of 2018 (Central Bank Law), and related financial regulations. It typically includes comprehensive details about the policy being transferred, purchase price calculations, representations and warranties, regulatory compliance requirements, and necessary authorizations. The document serves as the primary instrument for transferring policy ownership while protecting the interests of all parties involved and ensuring regulatory compliance in the UAE jurisdiction.

1. Parties: Identification of the Policy Owner (seller), the Purchaser, and the Insurance Company

2. Background: Context of the agreement, including details of the existing life insurance policy and the parties' intention to enter into a life settlement transaction

3. Definitions: Definitions of key terms used throughout the agreement, including technical insurance and financial terms

4. Sale and Purchase: Core transaction terms, including the policy details and purchase price

5. Purchase Price and Payment: Details of the settlement amount, payment method, and timing

6. Conditions Precedent: Conditions that must be met before the agreement becomes effective, including regulatory approvals

7. Representations and Warranties: Statements of fact and guarantees by both parties, particularly regarding policy ownership and validity

8. Seller's Obligations: Specific duties of the policy owner, including cooperation with transfer processes

9. Purchaser's Obligations: Specific duties of the buyer, including payment obligations and maintaining policy validity

10. Regulatory Compliance: Commitments to comply with UAE insurance and financial regulations

11. Confidentiality: Provisions regarding the confidentiality of transaction details and party information

12. Termination: Circumstances under which the agreement can be terminated and the consequences

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. Notices: Process for formal communications between parties

15. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments